|
Jos. A. Bank, based in Hampstead, Md., sells men's tailored and casual clothing, sportswear and footwear and operates 623 stores in 44 states and the District of Columbia. While it gears to a more established male professional, it's known for generous promotions like buying one suit or sport coat and getting three for free. Men's Wearhouse sells men's sportswear and suits through its namesake chain of stores, as well as the Moores and K&G retail chains. It runs more than 1,200 stores and is also in the tuxedo-rental business. Recently, it's been going after younger shoppers with suits with slimmer silhouettes. It's also trying to raise the average ticket price and announced in July that it's buying upscale Joseph Abboud brand for about $97.5 million in cash. "Men's Wearhouse is the first place you go right out of college to get a suit, " said Brian Sozzi, CEO and Chief Equities Strategies at Belus Capital Advisors. "But Jos. A. Bank's is where you trade up." In June, Men's Wearhouse ousted its chairman George Zimmer following a dispute over the direction for the company. Zimmer, who founded the company in 1973, appeared in its TV commercials with the slogan, "You're going to like the way you look. I guarantee it."
Jos. A. Bank made its offer Sept. 17, and privately pitched the deal to Men's Wearhouse executives in a phone call and follow-up letter. During a media call on Wednesday before Men's Wearhouse issued the statement rejecting the bid, Robert N. Wildrick, Jos. A. Bank's chairman of the board, described the proposal as a "win-win situation" for shareholders and consumers, noting that each company would benefit from its own expertise.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.